Financial Technology Funding by Round – Q1 2017

The following two graphs summarize the rounds of funding going into the Financial Technology space. Please note these graphics are made using data through January 2017.

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FinTech Funding Amount by Round

The graph above shows the total amount of VC funding broken out by round. In 2016, Series B funding has accounted for a substantial amount of total funding, with Series C and Late Stage funding coming in at second. In 2015, all types of VC funding accounted for approximately the same amount, with the exception of Seed funding.

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FinTech Funding Count by Round

The graph above shows the total count of funding events broken out by round. The general trend over the past few years has been a larger number of early stage funding events, such as Seed, Series A, and Series B funding events–and a diminishing number of events in the later stages.

We are currently tracking 2102 Financial Technology companies in 16 categories across 60 countries, with a total of $61.9 Billion in funding. Click here to learn more about the full Financial Technology landscape report and database.

Financial Technology Startup Exit Activity – Q1 2017

The following two graphs show exit activity in the Financial Technology sector. The graphics include data through January 2017.

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Exit Activity by Category in Financial Technology

The above graph summarizes the number of exits (acquisitions and IPOs) in each Financial Technology category. The Payments Backend category is leading the sector with 34 exits. The Personal Finance category follows behind with 33 exits.

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Exit Activity by Year in Financial Technology
The above graph summarizes the number of exits (acquisitions and IPOs) in Financial Technology by year. 2016 leads the sector with 58 exits. 2015 follows behind with 45 exits.

We are currently tracking 2063 Financial Technology companies in 16 categories across 59 countries, with a total of $59.3 Billion in funding. Click here to see the full Financial Technology landscape report and data.

Financial Technology Startup Landscape Trends and Insights – Q1 2017

Here is our Q1 2017 summary report on the Financial Technology (fintech) startup sector. The following report includes a startup landscape overview, graphical trends and insights, and recent funding and exit events.

We are currently tracking 2,056 Financial Technology companies in 16 categories across 59 countries, with a total of $58 Billion in funding. Click here to learn more about the full Financial Technology landscape report and database.

Financial Technology Market Overview and Innovation Quadrant – Q1 2017

The following post highlights how Venture Scanner categorizes the Financial Technology (fintech) startup landscape, and presents our Innovation Quadrant showing how those categories compare to one another. The data for this post is through January 2017.

Financial Technology Logo Map

The above sector map organizes the Financial Technology sector into 16 categories and shows a sampling of companies in each category.

Venture Scanner Financial Technology Innovation Quadrant

Our Innovation Quadrant provides a snapshot of the average funding and average age for the different Financial Technology categories and how they compare with one another.

  • Heavyweights: These categories are comprised of companies that have reached maturity with significant financing.
  • Established: These categories are comprised of companies that have reached maturity with less financing.
  • Disruptors: These categories are comprised of companies that are less mature with significant financing.
  • Pioneers: These categories are comprised of companies that are less mature with earlier stages of financing.

The definitions of the Financial Technology categories are as follows:

Banking Infrastructure: Companies that improve the operations of financial institutions. Examples include API integration with banks, white-label mobile solutions, and big-data analytics.

Business Lending: Companies that offer new ways for businesses to raise debt financing and have their credit risk assessed. Examples include peer-to-peer lending platforms, asset-based lines of credit, micro-financing, and big data risk analytics.

Consumer and Commercial Banking: Companies that allow consumers and SMBs to interface with banking services. Examples include Internet-only banking services and virtual credit cards.

Consumer Lending: Companies that offer new ways for consumers to obtain personal loans and have their credit risk assessed. Examples includes peer-to-peer lending, micro-financing, big data analytics, and consumer credit scoring services.

Consumer Payments: Companies that offer technology and services centered around payment issuers and consumers. Examples include mobile wallets, credit card aggregators, prepaid card innovations, and peer-to-peer payments.

Crowdfunding: Companies that provide new methodologies to raise non-equity and non-debt financing. Examples include crowdfunding platforms for products, social causes, and creative projects.

Equity Financing: Companies that allow private businesses to raise capital in exchange for equity and for investors to participate in private securities markets. Examples include crowdsourcing equity platforms and secondary market solutions.

Financial Research and Data: Companies that provide information services that enable investors to make better investment decisions. Examples include news, research, and data sources.

Financial Transaction Security: Companies that provide solutions to secure transactions, authenticate users, and prevent fraud. Examples include identify verification, big data analytics, and fraud detection algorithms.

Institutional Investing: Companies that help wealth managers, hedge fund managers, and professional traders to manage their portfolios and optimize returns. Examples include tools for stock sentiment analysis, alternative investment platforms, and algorithmic trading tools.

International Money Transfer: Companies that allow businesses and individuals to send money abroad easily and cheaply. Examples include digital-only remittances, mobile top-off services, and gift cards.

Payments Backend and Infrastructure: Companies centered around payment issuers/acquirers and the infrastructure enabling payments. Examples include payment solutions for e-commerce merchants, online payment gateways, ACH, direct deposits, and payment back-ends for mobile apps.

Personal Finance: Companies that provide ways for consumers to manage their personal finances. Examples include tools for tracking expenses, managing a budget, addressing wrongful credit card charges, and optimizing credit card rewards.

Point of Sale Payments: Companies centered around payment acquirers, providing physical payment solutions for brick-and-mortar businesses and organizations. Examples include mobile point-of-sales (POS) systems and POS innovations (e.g. QR code, palm scanners).

Retail Investing: Companies that provide new ways for consumers to invest in various securities. Examples include theme-based investments, crowdsourced investment expertise, unbiased algorithmic investment advice, and investment social networks.

Small and Medium Business Tools: Companies that offer solutions that help small and medium sized businesses manage their finances. Examples include tools for taxes, payroll, invoicing, and accounting.

We are currently tracking 2,056 Financial Technology companies in 16 categories across 59 countries, with a total of $58 Billion in funding. Click here to learn more about the full Financial Technology report and database.

Venture Investing In Financial Technology – Q1 2017

The following graphs highlight venture investing trends into the Financial Technology sector. The graphics include data through January 2017.

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The above graph compares the total venture funding in each Financial Technology category to the number of companies in the category. The Consumer Lending category leads the sector with around $17.5B in total funding and about 275 companies in total company count. The Payments Backend, Business Lending, and Consumer Payments categories also feature a large amount of investing and number of startups.

Financial Technology Average Funding by Category

The above analysis summarizes the average company funding in each Financial Technology category. The Consumer Lending category leads the sector with around $95M in average funding per company. The Consumer Payments and Payments Backend categories round out the top three.

We are currently tracking 2,049 Financial Technology companies in 16 categories across 59 countries, with a total of $58 Billion in funding. Click here to learn more about the full Financial Technology landscape report and database.

Average and Median Age by Financial Technology Category – Q4 2016

The following graph shows average and median age in the Financial Technology sector. The graphic includes data through October 2016.

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Average and Median Age by FinTech Category
The above graph summarizes the average and median age of companies in each Financial Technology category. The Payments Backend category has the highest average age at 9 years, and the Banking Infrastructure category has the highest median age at 10 years.

We are currently tracking 2045 Financial Technology companies in 16 categories across 59 countries, with a total of $57.8B in funding. Click here to learn more about the full Financial Technology landscape report and database.

Financial Technology Funding Trends – Q4 2016

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Total Financial Technology Funding by Year

The above graph summarizes the total funding raised by Financial Technology startups for each year. 2015 is the best year so far with over $15.6B in funding. 2016 comes in at second place with around $15.2B raised to date.

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Financial Technology Funding by Vintage Year
The above graph summarizes the total amount of funding raised by Financial Technology companies founded in a certain year. Companies founded in 2011 have raised the most funding at around $7.3B, followed by those founded in 2012 which have raised about $6.1B.

We are currently tracking 2015 Financial Technology companies in 16 categories across 59 countries, with a total of $56.1B in funding. Click here to learn more about the full Financial Technology landscape report and database.